Intro

A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 4.9% and pays semiannually. The annual market interest rate for similar bonds is 3.4%.

Attempt 1/1 for 10 pts.

Part 1

What is the price of the bond (in $)?

Attempt 1/1 for 10 pts.

Part 2

2 years later, the market interest rate for similar bonds has gone up to 4.4%. What is the new price of the bond (in $)?